• Companies qualifying as medium-sized

    • 438. Companies qualifying as medium-sized: general

      (1) A company qualifies as medium-sized in relation to its first financial year if the qualifying conditions are met in that year.
      (2) A company qualifies as medium-sized in relation to a subsequent financial year—
      (a) if the qualifying conditions are met in that year and the preceding financial year,
      (b) if the qualifying conditions are met in that year and the company qualified as medium-sized in relation to the preceding financial year,
      (c) if the qualifying conditions were met in the preceding financial year and the company qualified as medium-sized in relation to that year.
      (3) The qualifying conditions are met by a company in a year in which it satisfies both of the following requirements—  
      1. Turnover Not more than 68 million US dollars
      2. Number of employees Not more than 75
      (4) For a period that is a company's financial year but not in fact a year the maximum figures for turnover must be proportionately adjusted.
      (5) The number of employees means the average number of persons employed by the company in the year, determined as follows—
      (a) find for each month in the financial year the number of persons employed under contracts of service by the company in that month (whether throughout the month or not),
      (b) add together the monthly totals, and
      (c) divide by the number of months in the financial year.
      (6) This section is subject to section 439 (companies qualifying as medium-sized: parent companies).
      (7) This Chapter shall not apply to a company that is a restricted scope company.

    • 439. Companies qualifying as medium-sized: parent companies

      (1) A parent company qualifies as a medium-sized company in relation to a financial year only if the group headed by it qualifies as a medium-sized group.
      (2) A group qualifies as medium-sized in relation to the parent company's first financial year if the qualifying conditions are met in that year.
      (3) A group qualifies as medium-sized in relation to a subsequent financial year of the parent company—
      (a) if the qualifying conditions are met in that year and the preceding financial year,
      (b) if the qualifying conditions are met in that year and the group qualified as medium-sized in relation to the preceding financial year,
      (c) if the qualifying conditions were met in the preceding financial year and the group qualified as medium-sized in relation to that year.
      (4) The qualifying conditions are met by a group in a year in which it satisfies both of the following requirements—

      1. Aggregate turnover Not more than 68 million US dollars net (or 81.6 million US dollars gross)
      2. Aggregate number of employees Not more than 75
      (5) The aggregate figures are ascertained by aggregating the relevant figures determined in accordance with section 438 (companies qualifying as medium-sized: general) for each member of the group.
      (6) In relation to the aggregate figures for turnover—
      "net" means after any set offs and other adjustments made to eliminate group transactions in accordance with international accounting standards, and
      "gross" means without those set offs and other adjustments.
      A company may satisfy any relevant requirement on the basis of either the net or the gross figure.
      (7) The figures for each subsidiary undertaking shall be those included in its individual accounts for the relevant financial year, that is—
      (a) if its financial year ends with that of the parent company, that financial year, and
      (b) if not, its financial year ending last before the end of the financial year of the parent company.
      If those figures cannot be obtained without disproportionate expense or undue delay, the latest available figures shall be taken.

    • 440. Companies excluded from being treated as medium-sized

      (1) A company is not entitled to take advantage of any of the provisions of this Part relating to companies qualifying as medium-sized if it was at any time within the financial year in question—
      (a) a public interest entity,
      (b) a financial institution,
      (c) a member of an ineligible group.
      (2) A group is ineligible if any of its members is—
      (a) a public interest entity,
      (b) a financial institution,